Project link

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Project LINK is an international research group for econometric modelling coordinated by the University of Toronto and the Development Policy and Analysis Division of UN/DESA. The project LINK meeting, also known as UN / DESA Expert Group Meeting on the World Economy, takes place every October in order to discuss the economic situation in the world and perspectives. Project LINK links experts from research institutions, international economic organizations, the economic research institutions, academia, and representatives of five regional commissions[1]:

  • the Economic Commission for Europe (ECE),
  • the Economic Commission for Africa (ECA),
  • the Economic and Social Commission for Western Asia (ESCWA),
  • the Economic Commission for Latin America and the Caribbean (ECLAC).
  • the Economic and Social Commission for Asia and the Pacific (ESCAP)

Genesis

The genesis of the Project LINK dates back to the late 1960s when the Committee for Economic Stabilization and Growth at the Social Science Research Council in New York decided to create a world model system project for the industrialized economies of the interlinked countries. The project was intended to analyze the global transmission mechanism of economic activities and forecast its effects and impact. This initiative led to the initiation of the LINK project, bringing together experts from various countries around the world as well as organizations who are building a system of global models of economies. The methodological basis of the project is the matrix of world trade built by L.R. Klein, which enabled particular countries to combine exports and imports. L.R Klein assumed that the demand of other countries determines the volume of its exports, and domestic import prices are the same as the weighted sum of export prices in world trade. (Klein 1982). It allowed to develop multinational models of the world by international organizations (EU, OECD, World Bank, IMF) research institute (CEPI, FUGI, NIESR, Fair), central banks (Germany, USA) and a commercial organization (Global Insight) [2].

Scale of the Project LINK

Over the years, Project LINK has grown dynamically. The number of participants increased from 7-13 in the first half of the 1970s to over 100 participants by 1987. The number of macroeconomic models also grew dynamically. The macromodeles developed by various national centers have replaced the models of minimodels describing centrally planned countries and developed countries. With the increase in the number of models, the system based on equations grew. From the number of 1,500 equations in the early 1970s, up to 30,000 equations in 1998. This led to the development of available computer software [3].

Above model are being used in forecasting the world economy and policy simulations including the impact of the world economy on domestic development. Thanks to the project LINK, a lot of initiatives related to the creation of new models for the developing countries have been created. Especially in Asia and Latin America, and not so long ago in Africa. Since 2002, 15 members within the African Research Network for Development Policy Network support activity that are coordinated by DESA UN and Pretoria University [4].

Examples of Project link

  • The LINK Model: This is an econometric model, jointly developed by the University of Toronto and the United Nations Department of Economic and Social Affairs (UN/DESA). The model is used to forecast macro-economic variables such as GDP, inflation, employment, and exchange rates. The model is designed to be able to simulate the effects of policy changes, such as tax and monetary policies, on the macro-economic environment.
  • The LINK Development Database: This is a database created by Project LINK to provide access to a wide range of economic, social and environmental indicators from around the world. It is used to analyse economic development and the effects of policies and other external factors on economic development.
  • The LINK Simulation Model (LSM): This is a dynamic macroeconomic simulation model developed by Project LINK. It is used to analyse the impact of policy changes and other external factors on the macroeconomic environment. The model is used by researchers, policy makers and other stakeholders to analyse the economic impacts of policy changes, and to inform decision-making.

Advantages of Project link

Project LINK provides a number of advantages to the global economy. These advantages include:

  • Enhanced knowledge sharing and collaboration between researchers, experts, and economic organizations from around the world. By bringing together experts from various backgrounds and areas of expertise, Project LINK encourages dialogue, debate, and informed decision-making.
  • Improved access to data and analysis from a variety of sources. Project LINK provides a platform for researchers to access data from a variety of sources, making it possible to identify trends and correlations that may otherwise go unnoticed.
  • Increased understanding of the global economic situation. Through Project LINK, experts are able to gain a better understanding of the economic forces at play on a global scale and how different countries are affected.
  • Increased accountability. Project LINK provides a forum for the exchange of ideas and the sharing of research results, thereby increasing accountability among researchers and international organizations.
  • Improved coordination between UN/DESA and other international organizations. By providing a platform for collaboration between UN/DESA and other international organizations, Project LINK helps to ensure that economic policies are effectively implemented and monitored.

Limitations of Project link

Project LINK has several limitations. These include:

  • Lack of representation from certain countries in the project, which can lead to an incomplete view of international economic trends.
  • Limited scope of the project, which is focused primarily on econometric modelling.
  • Limited resources, which can be a barrier to the full exploration of international economic trends.
  • Limited access to timely data, which can make it difficult to accurately assess and interpret economic trends.
  • Limited ability to coordinate and implement projects and initiatives, which can limit the impact of the project.
  • Limited ability to provide policy advice and recommendations, which can lead to an incomplete view of the economic situation.

Other approaches related to Project link

Project LINK is an international research group for econometric modelling coordinated by the University of Toronto and the Development Policy and Analysis Division of UN/DESA. Other approaches related to Project LINK include:

  • Global Modelling Initiative (GMI): This is an international network of macro-econometric modellers that focuses on the integration of national, regional and global models for the purpose of producing research on global economic issues.
  • International Modeling Network (IMN): This network of international macro-econometric modellers was established to facilitate the exchange of information and ideas between researchers and to produce collaborative research.
  • Global Economic Modeling Network (GEMNet): This network is a platform of international macroeconomic modellers, researchers and policy makers, who are working together to identify and analyze policy options to address global economic challenges.

In summary, Project LINK is an international research group for econometric modelling coordinated by the University of Toronto and the Development Policy and Analysis Division of UN/DESA. Other approaches related to Project LINK include the Global Modelling Initiative (GMI), International Modeling Network (IMN) and Global Economic Modeling Network (GEMNet). These networks support the exchange of information and ideas between researchers and policy makers, as well as the production of collaborative research for addressing global economic challenges.

Footnotes

  1. ↑ Project LINK, 2019
  2. ↑ B. G. Hickman, 1991, (pp. 482–506)
  3. ↑ L. R. Klein, 1999, (pp. 27–151)
  4. ↑ B. G. Hickman , K. G. Ruffing , 1995, (pp. 271)


Project link — recommended articles
World Packaging Organisation — Labour market trends — Country basket — Chamber of Commerce — Innovative systems — Sakiko Fukuda-Parr — European Coal and Steel Community — Macro environment analysis — External analysis

References

  • Economic Analysis & Policy Division (2019), Department of Economic & Social Affairs
  • Hickman, B. G. (1991), Project LINK and multi-country modelling, Elgar, Aldershot
  • Hickman, B. G., Ruffing, K. G. (1995), Project LINK: past, present and future, Tokyo: UNU Press, Tokyo
  • Klein, L. R. (1999), Project LINK Principles of macroeconometric modeling, Amsterdam: North-Holland
  • LINK 2018 Report (2018), Project LINK Meeting Document 2018, "Department of Economic & Social Affairs"
  • LINK Global Economic Outlook 2018-2020 (2019), Project LINK Meeting Document 2018, "Department of Economic & Social Affairs"
  • Project LINK (2019), Project LINK Meeting Document 2018, "Department of Economic & Social Affairs"
  • Report on the Project LINK meeting 2017 (2017), Project LINK meeting document 2017, "Department of Economic & Social Affairs"

Author: Tomasz Kalemba

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